Verizon to take $5.8 billion hit in fourth quarter from unit write down

The Verizon logo is seen on the 375 Pearl Street building in Manhattan, New York City

(Reuters) -U.S. telecom company Verizon said on Wednesday it will take a $5.8 billion write-down in the fourth quarter, as it cut the value of its declining wireline business.

The company cut its financial projections for its Business unit, which caters to businesses and government clients after a five-year review, Verizon said. That business accounts for more than a fifth of the company’s revenue.

The wireline business, which includes legacy voice and data services, has been under pressure due to strong competition, an uncertain economy and a broader shift to wireless services.

After the charge, the goodwill balance of the unit was $1.7 billion as of Dec. 31, Verizon said. Its shares were down more than 1%.

In the third quarter, Verizon Business saw a 4% decline in revenue due to lower wireline and wireless equipment revenue.

Verizon will report its fourth-quarter results on Jan. 23.

Ad: Save every day with Amazon Deals: Check out today's daily deals on Amazon.

(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by Savio D’Souza and Shilpi Majumdar)

Related posts

What’s the weather forecast for New Jersey This Weekend?

Juvenile charged in Evesham vehicle burglary spree after multi-agency search

Fatal crash under investigation after two-car collision in West View